Can We Exclude HRA from PF Contributions? Seeking Clarity on Salary Breakdown

TMayur

Dear Experts,

Can HRA be excluded from PF contribution? For instance, if the salary is 25000/- with a bifurcation of 12500/- as Basic and 12500/- as HRA, PF can be calculated on the basic component only.

Glidor

HRA cannot exceed 1 lakh per year without compliance with Income Tax. Additionally, the HRA cannot exceed 40% (50% in certain cities) of the basic pay. Please check the criteria for your city with the income tax tables.

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute